Urgent: 1.7 Million Texans at Risk of Losing Health Coverage Due to Expiring Tax Credits & ACA Changes

Recent changes to the Affordable Care Act (ACA) could lead to about 1.7 million Texans losing their health insurance. This comes as the state grapples with the highest uninsured rate in the nation. Nearly 4 million Texans signed up for ACA health plans this year, marking a peak in the marketplace’s 12-year history. However, the expiration of expanded premium tax credits and new regulations from a recent tax bill will likely increase the number of uninsured residents.

Texas has not expanded Medicaid, leaving many low-income adults without coverage. The ACA has filled a critical gap, helping those who earn too much to qualify for Medicaid but too little to afford traditional insurance. Under this system, Texas’ uninsured rate improved from 23.7% in 2010 to 17.4% in 2023, largely due to ACA enrollment.

A significant portion of enrollees—about 2.5 million—earn between 100% and 150% of the federal poverty level. In comparison, Medicaid in expansion states covers those earning up to 138% of the federal poverty level. Most Medicaid recipients in Texas are children, with strict eligibility criteria for low-income adults.

Experts warn that these changes may lead to the most substantial coverage loss since the ACA was established. Cynthia Cox, a health policy expert at KFF, noted that this situation resembles the Great Recession when many lost jobs and health insurance. “This could impact many more people,” she stated.

The recent legislation introduces new barriers for those seeking ACA coverage. There will be more complex requirements for enrollment and a shorter open enrollment period. Furthermore, certain groups, including DACA recipients and asylum seekers, will be restricted from obtaining insurance through the ACA marketplace.

Approximately 95% of Texans with marketplace coverage benefit from sliding-scale premium subsidies, making insurance affordable based on their income. However, the new bill, according to Republicans, aims to reduce waste and firmer eligibility checks to ensure that only those genuinely in need receive assistance. Health and Human Services Secretary Robert F. Kennedy Jr. indicated that the focus is on preventing misuse and strengthening health programs.

On the flip side, health care advocates, like Lynn Cowles from Every Texan, argue that such measures could ultimately harm health outcomes. “The goal seems to be dismantling these health programs, leading to higher risks for everyone involved,” she said. KFF estimates that about 560,000 Texans could lose their coverage due to these changes alone.

In summary, the upcoming shifts in the ACA may significantly affect many Texans, especially those in vulnerable positions. As these changes unfold, it will be crucial to observe their implications for both health care access and overall public health in the state.

Source link